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Title: Earnings and employment determination in Africa, evidence from urban labour markets in Ghana and Tanzania
Author: Baffour, Priscilla Twumasi
Awarding Body: University of Nottingham
Current Institution: University of Nottingham
Date of Award: 2013
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This thesis centres on three core issues: determinants of urban worker earnings in Tanzania and Ghana: the role of education, determinants of selection into employment sectors in urban Tanzania and Ghana and finally an investigation into the pattern of returns to education in Ghana. On determinants of urban worker earnings in Tanzania and Ghana, we examine the role of education in earnings determination by using Urban Household Worker Surveys on Tanzania and Ghana for 2004-2006 in pooled sample estimations. We begin the analysis by investigating earnings determinants amongst self-employed (informal sector), private and public sector workers with particular focus on education. Secondly, we examine the role of education and other characteristics in facilitating entry into employment sectors in addition to analysing the pattern of returns to education along the earnings distribution. After addressing endogeneity and selectivity biases, we find that education plays an important role in promoting access to lucrative formal sector jobs particularly public sector employment, but has a minimal impact on earnings within the sector particularly in Ghana. Overall, we find higher returns to high levels of education in both countries particularly within the private sector. Estimated earnings determinants along the earnings distribution indicate primary and secondary levels of education are earnings inequality reducing among workers in Tanzania contrary to that of Ghana where these levels of education are found to increase earnings inequality. A consistent pattern is found for tertiary education in both labour markets which is indicative of the fact that tertiary education widens earnings inequality. Consequently we conclude that in Tanzania, primary and secondary education and ability are substitutes whereas tertiary education and ability, as is the case for all levels of education in Ghana are complements in the labour market.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available